It’s a choppy session as the Street digests the mixed consumer inflation report. The three major indices opened higher but reversed the course quickly.

Fed speakers continue to push back on a March cut. In this opportunity, Fed’s Mester believes it is too early for a March cut as the latest CPI read shows Fed has more work to do. Richmond Fed President Barkin is speaking this afternoon and Minneapolis Fed President Kashkari tomorrow.

Currently, Fed Fund Futures are implying a 67% chance of a March interest rate cut, and this could change after tomorrow’s PPI numbers.

There is no safety in safe havens, like Utilities (XLU) which holds the largest decline this afternoon.

On the economic front, the 30-year bond auction came in at 4.229%, compared to the previous December 12^th 2023, which was at 4.344%.

Tomorrow, all eyes will be on the bank results and PPI numbers.